Team Blitz India
NEW DELHI: Encouraged by volume growth, margin improvement and recovery in rural sales, India’s top fast-moving consumer goods (FMCG) companies are now back to their normal growth cycle as they step up investments as well as spending on advertising and marketing.
FMCG companies are chasing volume growth again after a gap of a few quarters, offering higher grammage and price cuts thanks to inflationary pressures softening on key raw materials for everything from soaps to food items, media reports said on May 22.
Hindustan Unilever (HUL), Dabur, Marico, Godrej Consumer Products, ITC, Tata Consumer Products and Nestle reported volume recovery in the March quarter and said they expect a gradual pickup in consumption in FY24.
“The prospects of a sustained recovery have strengthened. After five quarters of volume decline, the sector has posted volume growth, Marico MD and CEO Saugata Gupta said in the company’s earnings conference call. “Urban consumption has been steady while rural is showing some convincing signs of having bottomed out.”
Foods continue to drive growth for the sector, while the home and personal care segment also entered positive territory after an extended slowdown.
